Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-11-12

alton of the debt. The savingin transport
alton for the Government would alone |
more than pay the debt. The saving in |
this respect effected by completing the |
road seven years before the law required it, |
would have paid the debt twice over. at its
present value, at that time. The saving
on the Government transportation during
those seven years, or up to June so, 1876.
was as Mr.. Miller shows, 81, 7G3. 17S; and
the present value of the debt, at that time
discounted, at the rate of interest borne by
the bonds, was SCI ,522, 274. Up to January
l, 1856, the saving in transportation was
$139. 347, 74l, and the present value of the
debt at that time was $40, 647 ,795, or less
than one-third of the saving. Mr.. Miller
estimates further that at the same rates the
aggregate saving in cost of transportation
to the Government, up to the maturity of
the bonds, will be 1888, 040, 430, and that
the balance then due on the debt will be
$l04, 397 $40, or considerably less than half
the saving. If the Government should
cancel the debt entirely, therefore, at ma
turity 1t would have saved more besides in
transportation, by reason of the construc-
ton of the road, than would pay all the
bonds originally issued, with thirty years
interest. This fact alone we conceive is
strong argument in favor of canceling the
debt as an entirety.
There are, however, other equities in IA
vor of the companies which are entitled to
consideration in any adjustment of this
debt. Apart from the money actually due
the companies for transportation over I'M
aided lines and the amount lost by the
companies in the Thurman sinking
fund.-" there is the fact of the loss upon the
discount of the subsidy bonds when ne
gotiated. The loss in the principal of the
bonds to the Central Pacific alone by this
discount was $7,120,073 SO, the interest on
which to maturity will be S12,S1G, 132 SO.
If, by reason of the impaired credit of the
Government, its bonds were at such a dis
count, certainly the companies ought not
to suffer. Another important item to be
considered in adjusting the debt is the loss
to the companies from the diversion of
business TO other roads subsidized by the
Government. This loss is estimated by
Senator Stanford at $37, 100000 for both
companies, and the estimate is undoubt-
edly q moderate one. 1t NAV well be
claimed that the Government did not I'M
dertake to subsidize any other road when
it subidized this. But when, by subsidiz-
ing other roads, it has impaired the power
of these companies to earn money TO paw
their debt to it, that fact ought to be duly
considered when it comes to settling the
debt.
There are still other general considera-
lions which appeal strongly to the leniency
of the Government in dealing with this
| debt. 1t is to be remembered, above all,
that the work which these men did was in
reality a great national work, undertaken
and carried through at time when, by
reason of the war. the cost of construction
was very much enhanced. 1t was COM
rN1a tn6 haf he
| through the uneXampled energy and great
sacrifices of the builders. 1t was carried
| through at this end by men of compare
| lively moderate fortunes, at q time when
| the foremost capitalists of the country
stood aloof and hesitated or refused TO risk
| dollar in it. 1t was carried through by
| the indomitable personal forcefulness and
| matchless sagacity of the builders. If thew
| had had unlimited means at command
| their success would not have been so Won
| derful or worthy of praise. Give him
| money enough and any man of average ca
| pacity could perhaps have built the road.
But these men did not have money enough.
| Aside from the slender assistance furnished
| by the Government, for slender il was as
| compared with the magnitude of the work.
the men of the Central Pacific built the
road with resources of their own creation.
We doubt whether there was an equal
number of other men in California who
could have accomplished it. Certainly
| there were no others who dared to try.
This is an important fact to be considered
in dealing with this matter now
| The great and lasting benefit of this work
TO the nation is also to be considered. No
computation of this benefit is possible. 1t
| Is beyond the resources of arithmetic. As
| well undertake to enumerate the sands
| upon the seashore. Nor is the benefit con-
fined to this particular road 1t was the
| pioneer road. 1t demonstrated the posi-
bility and the value of transcontinental
| railway, and it led the way for all that
have followed. Hence this original road is
| to be credited with some of the benefit
| accruing from the latter roads.
| But finally, as we have already stated,
| simple justice to the people of the Pacific
| Coast requires that this debt should not be
! cast upon them, as it will be if the paw
ment of it is exaeted. The companies will
| never stand that exaction themselves.
! They will, they must, for their own pro-
| lection, exact reimbursements from their
patrons. The question then is, are the peo-
| pie of this Coast to be required to bear the
whole or greater part of this burden? Are
they to be compelled to pay such an undue
proportion of the cost of work undertaken
| for the benefit of the whole nation as
national necessity? They have already. in
| the local aid furnished to the road, paid for
| the mere local benefit. The national bene-
| tit should be paid for by the nation, and
| California should be asked to pay no more
| than her due portion in the same way as the
rest OF the nation. Every dollar beyond
that demanded of them, directly or indi-
| rectly, is an unjust exaction.